IP-led manufacturing core to Accel's strategy in India

VC firm looks to tap India's manufacturing potential as geopolitical trends shift supply chains

- Rwit Ghosh

Some of Accel's theses for India, such as climate tech and sustainability, agritech, and electric vehicles, haven't panned out as well as the global venture capital firm had hoped. But that's not stopped Accel from setting its sights on what it calls advanced manufacturing, where the firm plans to make significant bets from its latest $650-million fund.

"I don't think climate tech has close to lived up to potential, at least in India, and I think it's the same for some other nations globally," Prashanth Prakash, partner at Accel, said.

In agritech, Accel's investment in AgroStar is among a few that's expected to pay off. The venture capital (VC) firm led a $6.7 million round in April for the Pune-based startup that offers seeds and farming advice to farmers.

As for the consumption sector, Prakash said Accel continues to be positive, although he added that both VCs and startups have to find "new paradigms" rather than building another Swiggy or Flipkart.